Americans plan to spend an average of $708 on holiday gifts this year, down 2% from $721 in 2025, according to PwC’s Holiday Outlook 2026, a survey of 4,093 U.S. consumers. Shoppers are trimming discretionary spending but protecting the things that matter most: gifts and time with family.
What’s trending
Holiday budgets are tightening, but not disappearing. PwC’s Holiday Outlook 2026, reported by Retail TouchPoints in September, found average planned gift spending of $708, a 2% dip from last year’s $721. Households with children still plan to spend more, at $875 on average, compared with $635 for households without kids.
The squeeze is coming from the wider economy. The survey notes that the University of Michigan consumer confidence index fell 18.5% year over year, and the personal saving rate slid from 4.5% in January to 2.7% in June.
Why it’s resonating
What stands out in the data is what people are refusing to give up. Rather than skipping the holidays, shoppers are cutting discretionary categories while protecting gifts and family time. Travel spending, for example, is falling as consumers trade down on flights and hotels, even as travel intent holds relatively steady.
That lines up with what many families already feel: the tradition matters more than the price tag. A smaller budget doesn’t have to mean a smaller celebration, as long as the moments that bring everyone together stay on the calendar.
Making a smaller budget feel bigger
One of the simplest ways families are stretching a holiday budget is the group gift exchange. Instead of everyone buying for everyone, each person brings one wrapped gift, often with a spending limit everyone agrees on. It cuts costs and the shopping list in one move.
The trick is making a single modest gift feel like an event, and that’s where a game comes in. A classic left right story, where gifts are passed around the circle every time the reader says LEFT or RIGHT, turns a $15 present into ten minutes of laughter. Printable versions like this Christmas left right game with names even let you write family members into the story, so everyone is listening for their name.
The bottom line
Holiday budgets in 2026 are a little tighter, but the data shows Americans are holding on to what counts. Expect fewer splurges and more creative ways to keep traditions alive, with the gift exchange leading the way.